Investing

5 Blazing Stocks to Buy Trading Under $10 With Massive Upside Potential

BobGrif / Getty Images

While most of Wall Street focuses on large-cap and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. At those steep prices, it is difficult to get any decent share count leverage.

Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only make some good money but to get a higher share count. That can really help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.
[in-text-ad]
We screened our 24/7 Wall St. research database looking for smaller cap companies that could very well offer patient investors some huge returns the rest of 2021 and beyond. Many of the biggest companies in the world, including Apple and Amazon, traded in the single digits at one time.

While all five of the following stocks are rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

AvePoint

This very off-the-radar company could be a big winner. AvePoint Inc. (NASDAQ: AVPT) provides Microsoft 365 data management solutions worldwide. It offers a suite of software as a service solutions to migrate, manage and protect data. The company provides cloud solutions for Office 365, Salesforce and Dynamics 365, as well as hybrid/on-premises products. It also offers advisory and implementation, maintenance and support, Microsoft Teams surge and advisory, migration as a service and quick-start services.

Earlier this summer, the company announced the completion of its previously announced business combination with Apex Technology Acquisition, a publicly traded special purpose acquisition company (SPAC).

Cowen has a large $14.50 price target on the shares, but the consensus target is even higher at $15.60. The stock closed on Friday at $8.82 per share.


PG&E

This is a safer way for investors to play stocks trading under $10. PG&E Corp. (NYSE: PCG) engages in the sale and delivery of electricity and natural gas to customers in northern and central California. It generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cell and photovoltaic sources.

As of December 31, 2020, the company owned and operated approximately 18,000 circuit miles of interconnected transmission lines, 35 electric transmission substations, approximately 108,000 circuit miles of distribution lines, 68 transmission switching substations and 758 distribution substations. It also owned and operated a natural gas transmission, storage and distribution system consisting of approximately 43,500 miles of distribution pipelines, approximately 6,300 miles of backbone and local transmission pipelines and various storage facilities.

PG&E serves residential, commercial, industrial and agricultural customers, as well as natural gas-fired electric generation facilities.

The RBC Capital Markets price target on PG&E stock is $14. The consensus target is $14.86, and the shares closed at $9.28 on Friday.

Talkspace

This company posted very solid second-quarter results and the stock has sold upside potential. Talkspace Inc. (NASDAQ: TALK) operates as a virtual behavior health care company. It delivers health care through encrypted web and mobile platforms.

The company offers treatment options for every need, including psychiatry, adolescent, individual and couples therapy. The members can send text, video and voice messages to their therapists and engage in live video sessions. Talkspace brings the telehealth model to the world of mental and behavioral health.

Talkspace users can select from a list of providers, all licensed by the appropriate medical boards. Using online video connections to link patients and doctors makes it easy to record the conversations. In addition, Talkspace has hit on a novel idea to bring AI tech to bear on the mental health segment. The company records therapy sessions, strips out all identifying data and has machine learning and speech analysis algorithms analyze the content.

The $7 Citigroup price target compares with an $11.00 consensus target. The stock was last seen on Friday at $5.24.

23andMe

This stock has been a roller-coaster ride this year but is offering the best entry point in some time. 23andMe Holding Co. (NASDAQ: ME) is a consumer genetics and research company that operates through two segments.

The Consumer & Research Services segment provides a suite of genetic reports, including information on customers’ genetic ancestral origins, personal genetic health risks and chances of passing on certain rare carrier conditions to their children, as well as reports on how genetics can affect responses to medications based on genetic testing of a saliva sample through its spit kit.

The Therapeutics segment focuses on drug development and on discovery and development of novel therapies to improve patient lives across various therapeutic areas, including oncology, respiratory and cardiovascular diseases. It also offers out-licensing of intellectual property associated with identified drug targets related to drug candidates under clinical development.

The company has a collaboration agreement with GlaxoSmithKline Intellectual Property (No.3) Limited to leverage genetic insights to validate, develop and commercialize promising drugs.

Credit Suisse recently started coverage and has a $13 price target. No consensus target was available as this was a recent SPAC conversion. Since the IPO, the shares have traded between $7.01 and $18.16. On Friday, shares closed at $8.71 apiece.

Wheels Up Experience

Flying by private jet has increased since the pandemic, and this is a great way to play the industry. Wheels Up Experience Inc. (NYSE: UP) provides private aviation services, primarily in the United States.

The company offers a suite of products and services, including multi-tiered membership programs, on-demand flights across various private aircraft cabin categories, aircraft management, retail and wholesale charter, whole aircraft acquisitions and sales, corporate flight solutions, special missions, signature events and experiences, and commercial travel. It operates a fleet of approximately 1,500 owned, leased, managed and third-party aircraft.

Last week the company announced that revenue increased 113% year-over-year to $285.6 million and the number of active members grew 47% year-over-year to 10,515. While it is still losing money, the path to profitability appears to be in the works.

BTIG Research started coverage recently and its $13 price target tops the $12.50 consensus estimate. The stock closed trading at $7.81 on Friday.


These are five stocks for aggressive investors looking to get share count leverage on companies that have sizable upside potential. While not suited for all investors, they are not penny stocks with absolutely no track record or liquidity, and major Wall Street firms have research coverage.

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.